State RegulationsFL specificDifficulty 2/5
Which of the following is a duty of the REPLACING insurer in a Florida replacement transaction?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under F.A.C. 69B-151.007, the replacing insurer's duties include obtaining the dual-signed statement with the application, receiving Form OIR-B2-312 and all sales proposals, immediately forwarding the B2-312 copy to the existing insurer, and mailing the Comparative Information Form OIR-B2-313 within 5 working days of receiving the application and notice (or by the issue date, whichever is earlier). The 10-day comparative-information duty, valued on the current policy year, belongs to the EXISTING insurer under F.A.C. 69B-151.008.
Why the other options are wrong
- A) The 10-day duty to provide the B2-313 information belongs to the existing insurer after it receives the B2-312.
- B) The existing insurer values the comparative information on the current policy year of the EXISTING policy, not the new one.
- C) Neither insurer cancels the existing policy for the policyholder; surrendering the old contract is the owner's decision.
Memory hook
Replacing insurer: 5 working days; existing insurer: 10 days.